-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rxj4wRomhQmbCtBUdhoLvKWTV4CTs7qWRDwYizUe8KWoZqFM2MXuAKL0vNp1FPsV LH0fkKw+pAlg/txKyayOSA== 0000078814-98-000009.txt : 19981126 0000078814-98-000009.hdr.sgml : 19981126 ACCESSION NUMBER: 0000078814-98-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981030 ITEM INFORMATION: FILED AS OF DATE: 19981116 DATE AS OF CHANGE: 19981125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PITNEY BOWES INC /DE/ CENTRAL INDEX KEY: 0000078814 STANDARD INDUSTRIAL CLASSIFICATION: 3579 IRS NUMBER: 060495050 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03579 FILM NUMBER: 98753049 BUSINESS ADDRESS: STREET 1: WORLD HEADQUARTERS 61-11 STREET 2: ONE ELMCROFT ROAD CITY: STAMFORD STATE: CT ZIP: 06926 BUSINESS PHONE: 2033565000 8-K 1 CURRENT REPORT ON FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 30, 1998 PITNEY BOWES INC. (Exact name of registrant as specified in its charter) Commission File Number: 1-3579 State of Incorporation IRS Employer Identification No. Delaware 06-0495050 World Headquarters Stamford, Connecticut 06926-0700 Telephone Number: (203) 356-5000 Pitney Bowes Inc. - Form 8-K Page 2 Item 2 - Acquisition or Disposition of Assets. On October 30, 1998, Colonial Pacific Leasing Corporation (CPLC), a wholly owned subsidiary of the company, transferred the operations, employees and substantially all assets related to its broker-oriented external financing business to General Electric Capital Corporation (GECC), a subsidiary of the General Electric Company. The company received approximately $790 million at closing, which approximates the book value of the net assets sold or otherwise disposed of and related transaction costs. This transaction is subject to post closing adjustments pursuant to the terms of the purchase agreement with GECC entered into on October 12, 1998. Proceeds from the sale will be used to reinvest in core businesses around the world, pay down consolidated debt and repurchase shares of the company's stock. Item 7 - Financial Statements and Exhibits. b. Pro Forma Financial Information The unaudited pro forma consolidated financial information presented herein gives effect to the company's sale of CPLC on October 30, 1998. The company's unaudited pro forma consolidated financial information should be read in conjunction with the historical financial statements in the company's Form 10-K for the year ended December 31, 1997. The unaudited pro forma consolidated statements of income for the periods ended September 30, 1998 and 1997 are incorporated by reference to the registrant's September 30, 1998 Form 10-Q. The accompanying unaudited pro forma consolidated statements of income for the years ended December 31, 1997, 1996 and 1995 reflect the historical consolidated statements of income, for the same periods, with the operating results of CPLC excluded to arrive at pro forma consolidated statements of income. The accompanying September 30, 1998 unaudited pro forma consolidated condensed balance sheet reflects the consolidated balance sheet at September 30, 1998 as presented in the registrant's September 30, 1998 Form 10-Q adjusted to reflect the transaction as if it occurred at September 30, 1998. Pitney Bowes Inc. - Form 8-K Page 3 PITNEY BOWES INC. PRO FORMA CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except share data)
Year Ended December 31, 1997 -------------------------------------------------- Adjustments As Reported (a) Pro Forma --------------- --------------- --------------- Revenue from: Sales..................................................... $ 1,834,057 $ 1,834,057 Rentals and financing..................................... 1,782,851 $ (180,451) 1,602,400 Support services.......................................... 483,556 483,556 --------------- --------------- --------------- Total revenue......................................... 4,100,464 (180,451) 3,920,013 --------------- --------------- --------------- Costs and expenses: Cost of sales............................................. 1,081,537 1,081,537 Cost of rentals and financing............................. 557,769 (106,679) 451,090 Selling, service and administrative....................... 1,367,862 1,367,862 Research and development.................................. 89,463 89,463 Interest, net............................................. 200,735 (46,201) 154,534 --------------- --------------- --------------- Total costs and expenses............................. 3,297,366 (152,880) 3,144,486 --------------- --------------- --------------- Income from continuing operations before income taxes....... 803,098 (27,571) 775,527 Provision for income taxes.................................. 277,071 (10,546) 266,525 --------------- --------------- --------------- Income from continuing operations........................... $ 526,027 $ (17,025) $ 509,002 =============== =============== =============== Basic earnings per share.................................... $ 1.82 $ (.06) $ 1.76 =============== ============== =============== Diluted earnings per share.................................. $ 1.80 $ (.06) $ 1.74 =============== ============= =============== Average common shares outstanding........................... 288,782,996 288,782,996 Average common and potential common shares outstanding...... 292,517,116 292,517,116 (a) Adjustments represent results of operations from CPLC.
Pitney Bowes Inc. - Form 8-K Page 4 PITNEY BOWES INC. PRO FORMA CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except share data)
Year Ended December 31, 1996 -------------------------------------------------- Adjustments As Reported (a) Pro Forma --------------- --------------- --------------- Revenue from: Sales..................................................... $ 1,675,090 $ 1,675,090 Rentals and financing..................................... 1,717,738 $ (163,029) 1,554,709 Support services.......................................... 465,751 465,751 --------------- --------------- --------------- Total revenue......................................... 3,858,579 (163,029) 3,695,550 --------------- --------------- --------------- Costs and expenses: Cost of sales............................................. 1,025,250 1,025,250 Cost of rentals and financing............................. 529,740 (95,115) 434,625 Selling, service and administrative....................... 1,340,276 1,340,276 Research and development.................................. 81,726 81,726 Interest, net............................................. 197,204 (40,701) 156,503 --------------- --------------- --------------- Total costs and expenses............................. 3,174,196 (135,816) 3,038,380 --------------- --------------- --------------- Income from continuing operations before income taxes....... 684,383 (27,213) 657,170 Provision for income taxes.................................. 214,970 (10,409) 204,561 --------------- --------------- --------------- Income from continuing operations........................... $ 469,413 $ (16,804) $ 452,609 =============== =============== =============== Basic earnings per share.................................... $ 1.57 $ (.06) $ 1.51 =============== ============== =============== Diluted earnings per share.................................. $ 1.56 $ (.06) $ 1.50 =============== ============== =============== Average common shares outstanding........................... 298,233,766 298,233,766 Average common and potential common shares outstanding...... 301,303,356 301,303,356 (a) Adjustments represent results of operations from CPLC.
Pitney Bowes Inc. - Form 8-K Page 5 PITNEY BOWES INC. PRO FORMA CONSOLIDATED STATEMENT OF INCOME (unaudited) (Dollars in thousands, except share data)
Year Ended December 31, 1995 -------------------------------------------------- Adjustments As Reported (a) Pro Forma --------------- --------------- --------------- Revenue from: Sales..................................................... $ 1,546,393 $ 1,546,393 Rentals and financing..................................... 1,575,094 $ (128,479) 1,446,615 Support services.......................................... 433,267 433,267 --------------- --------------- --------------- Total revenue......................................... 3,554,754 (128,479) 3,426,275 --------------- --------------- --------------- Costs and expenses: Cost of sales............................................. 941,124 941,124 Cost of rentals and financing............................. 463,601 (77,345) 386,256 Selling, service and administrative....................... 1,230,671 1,230,671 Research and development.................................. 81,800 81,800 Interest, net............................................. 218,627 (29,674) 188,953 --------------- --------------- --------------- Total costs and expenses............................. 2,935,823 (107,019) 2,828,804 --------------- --------------- --------------- Income from continuing operations before income taxes....... 618,931 (21,460) 597,471 Provision for income taxes.................................. 211,222 (7,209) 204,013 --------------- --------------- --------------- Income from continuing operations........................... $ 407,709 $ (14,251) $ 393,458 =============== =============== =============== Basic earnings per share.................................... $ 1.35 $ (.05) $ 1.30 =============== ============== =============== Diluted earnings per share.................................. $ 1.34 $ (.05) $ 1.29 =============== ============== =============== Average common shares outstanding........................... 302,280,548 302,280,548 Average common and potential common shares outstanding...... 304,739,952 304,739,952 (a) Adjustments represent results of operations from CPLC.
Pitney Bowes Inc. - Form 8-K Page 6 PITNEY BOWES INC. CONSOLIDATED CONDENSED BALANCE SHEET (unaudited) (Dollars in thousands)
September 30, 1998 -------------------------------------------------- Adjustments As Reported (a) Pro Forma --------------- --------------- --------------- Assets - - ------ Current assets: Cash and cash equivalents............................. $ 144,974 $ 790,126 $ 935,100 Short-term investments............................... 1,930 1,930 Accounts receivable................................... 346,475 346,475 Finance receivables.............................. 1,435,795 1,435,795 Inventories .......................................... 235,568 235,568 Other current assets and prepayments.................. 173,458 173,458 Net assets of discontinued operations................. 776,941 (776,941) - --------------- --------------- --------------- Total current assets............................... 3,115,141 13,185 3,128,326 --------------- --------------- --------------- Property, plant and equipment, net.......................... 470,110 470,110 Rental equipment and related inventories, net .............. 803,738 803,738 Property leased under capital leases, net .................. 3,909 3,909 Long-term finance receivables............................... 1,938,581 1,938,581 Investment in leveraged leases.............................. 817,144 817,144 Goodwill.................................................... 213,778 213,778 Other assets................................................ 869,944 869,944 --------------- --------------- --------------- Total assets................................................ $ 8,232,345 $ 13,185 $ 8,245,530 =============== =============== =============== Liabilities and stockholders' equity - - ------------------------------------- Current liabilities: Accounts payable and accrued liabilities.............. $ 842,511 $ 13,185 $ 855,696 Income taxes payable.................................. 165,414 165,414 Notes payable and current portion of long-term obligations.............................. 1,844,077 1,844,077 Advance billings...................................... 362,801 362,801 --------------- --------------- --------------- Total current liabilities.......................... 3,214,803 13,185 3,227,988 --------------- --------------- --------------- Deferred taxes on income.................................... 929,199 929,199 Long-term debt ............................................. 1,710,533 1,710,533 Other noncurrent liabilities................................ 366,799 366,799 --------------- --------------- --------------- Total liabilities.................................. 6,221,334 13,185 6,234,519 --------------- --------------- --------------- Preferred stockholders' equity in a subsidiary company...... 300,000 300,000 Stockholders' equity: Cumulative preferred stock............................ 34 34 Cumulative preference stock .......................... 2,076 2,076 Common stock.......................................... 323,338 323,338 Capital in excess of par value........................ 18,198 18,198 Retained earnings..................................... 2,971,883 2,971,883 Accumulated other comprehensive income................ (90,548) (90,548) Treasury stock........................................ (1,513,970) (1,513,970) --------------- --------------- --------------- Total stockholders' equity......................... 1,711,011 - 1,711,011 --------------- --------------- --------------- Total liabilities and stockholders' equity.................. $ 8,232,345 $ 13,185 $ 8,245,530 =============== =============== =============== (a) Adjustments represent the disposition of substantially all of CPLC's assets and the related transaction costs. The proceeds are subject to post closing adjustments pursuant to the terms of the purchase agreement with GECC entered into on October 12, 1998.
Pitney Bowes Inc. - Form 8-K Page 7 Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PITNEY BOWES INC. November 16, 1998 /s/ M. L. Reichenstein -------------------------------------------- M. L. Reichenstein Vice President and Chief Financial Officer (Principal Financial Officer) /s/ A. F. Henock -------------------------------------------- A. F. Henock Vice President - Controller and Chief Tax Counsel (Principal Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----